Avenues for EU action on citizenship and residence by investment schemes - European added value assessment

Abstract

Citizenship and residence by investment schemes allow third-country nationals to obtain residence or citizenship in a host country in exchange for a financial contribution. In the European Union (EU), at least 130 000 persons have taken advantage of such schemes, which have generated over €21.4billion in revenue for the countries concerned. This European added value assessment (EAVA) reviews the key issues raised by investment schemes and the possible legal bases on which the EU could act to address them. Several policy options are put forward that could be
implemented through amendments to existing EU legislation or by introducing new legislation. The policy options include: (1) Phasing out investment schemes in the EU; (2) Applying an EU-level tax on investment schemes; and (3) Regulating investment schemes. In addition, the assessment considers the introduction of minimum physical presence requirements on residence by investment schemes and regulating access to the EU for investor migrants from third countries. The policy options are assessed in terms of their potential consequences and impacts, subsidiarity, proportionality and the overall added value the EU might gain.

Keywords: nationality, EU citizenship

JEL Classification: K19, K33